The Electricity Market Reform (EMR) aims to decarbonise electricity generation and keep the lights on, while minimising the cost of electricity to consumers.
Initiated in 2010, it puts in place measures to help attract the £110 billion investment which is needed to replace current generating capacity and upgrade the grid by 2020, as well as cope with a rising demand for electricity.
EMR was designed to transform the UK electricity sector to one in which low-carbon generation can compete with conventional, fossil-fuel generation, paving the way towards a cleaner and more sustainable energy mix.
Successful implementation of EMR will play a critical role in the UK’s success in meeting its decarbonisation and energy security targets.
The Westminster Energy committe inquiry will assess the Government’s progress towards implementing the different strands of the EMR reforms and achieving its overall goals. Consequently, the Committee invites responses addressing some or all of the following issues:
The current implementation plan: is the timetable and level of ambition correct and is it adequately resourced?
How effectively are contracts being awarded during the transition from Renewables Obligation (RO) to Contracts for Difference (CfDs)?
Will the forthcoming CfDs enable companies to access the finance needed to support their project?
What impact has freezing the Carbon Price Floor had on investment in low carbon generation?
What are the main concerns regarding the upcoming Capacity Market auctions and what impact will the auctions have on EMR ambitions to offer value for money to consumers?
How are the roles and accountability of the National Grid and the counterparty bodies developing?
How much new low-carbon capacity is the Levy Control Framework likely to support? Is there a risk that most of the budget will be spent in the first half of this decade?
The deadline for submitting evidence is 21 October 2014.
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